BKV Corporation (BKV) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: N/A
• Average Volume (3M): 300.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: 2.24%
• EPS Growth: -919.48%
• Country: US
• Employees: 366
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.41
• Shares Outstanding: 84,708,374
• 10 Day Avg. Volume: 262,106
• 30 Day Avg. Volume: 300,950
• PEG Ratio: -0.18
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.78
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 4.90
• Enterprise Value/Ebitda: 3.42
• 1Y Price Target: $29.57
• Price Target Upside: 26.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: $23.00 ▼(-1.46%Downside)

The most significant factor affecting BKV's stock score is its financial performance, which is currently challenged by declining revenues and negative profitability. While technical analysis shows some positive momentum, valuation metrics remain unattractive due to negative earnings. The joint venture for CCUS projects is a positive corporate event, offering potential long-term benefits.

Positive Factors

Cost Efficiency

BKV's CCS projects are cost competitive due to their proximity to emission sites, resulting in low transportation costs.

Earnings Potential

North ERCOT pricing has been stronger, which could enhance the earnings potential of BKV's power unit.

Market Position

BKV is well-positioned in the strengthening natural gas markets and is progressing on its CCUS strategy with joint venture funding and on-track projects.

Negative Factors

Future Outlook

Investors were disappointed by BKV's 2025 outlook for the power segment EBITDA, which is at odds with the positive outlook for power demand and pricing in the state.

Production Guidance

The F2025 production guidance implies a ~2% year-over-year decline.

BKV Corporation Business Overview & Revenue Model

Company Description

BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.

How the Company Makes Money

BKV Corporation generates revenue primarily through the sale of oil and natural gas. The company earns income by extracting these resources from its owned or leased properties and selling them in the domestic and international markets. BKV's revenue streams include long-term contracts with utility companies, wholesale distributors, and industrial customers who rely on a consistent supply of natural gas and oil products. Additionally, the company may engage in strategic partnerships and joint ventures to expand its asset portfolio and enhance its distribution network, further contributing to its earnings. Factors such as market prices for oil and gas, production volumes, and operational efficiencies are significant contributors to the company's financial performance.

BKV Corporation Financial Statement Overview

Summary

BKV Corporation's financial performance in 2024 shows significant challenges, with declining revenues and negative profitability margins impacting overall financial health. The balance sheet remains robust with low leverage, but profitability issues are evident. Cash flow improvements are insufficient to counteract negative earnings, highlighting operational efficiency concerns.

Income Statement

The income statement reveals a concerning trend with declining revenues and profitability. The gross profit margin for 2024 has decreased to 64.01% from 69.78% in 2023, while the net profit margin turned negative at -23.63% from 15.82% the previous year. The company reported negative EBIT and EBITDA margins for 2024, indicating operational inefficiencies. Revenue declined by 18.23% from 2023 to 2024, highlighting a challenging market environment or operational issues.

Balance Sheet

The balance sheet reflects a relatively stable equity structure with a debt-to-equity ratio of 0.11 in 2024, down from 0.38 in 2023, indicating reduced leverage. However, the return on equity plummeted to -9.16% in 2024 from 8.25% in 2023, driven by the negative net income. The equity ratio improved to 69.89% in 2024, suggesting strong capital structure despite profitability challenges.

Cash Flow

Cash flow analysis shows mixed results. The operating cash flow to net income ratio stands at -0.83 in 2024, reflecting negative net income's impact on cash generation. Free cash flow turned positive at $17.62 million in 2024 from a negative $69.53 million in 2023, but the free cash flow to net income ratio was -0.12, indicating insufficient free cash flow relative to net losses. The free cash flow growth rate is positive, but operational cash generation remains weak.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
680.65M	604.53M	739.28M	1.66B	889.53M	122.53M
	Gross Profit
414.21M	387.00M	515.91M	1.54B	797.25M	35.19M
	EBIT
-178.93M	-154.80M	157.62M	304.56M	20.32M	-9.91M
	EBITDA
689.00K	82.18M	446.59M	640.00M	-74.02M	87.54M
	Net Income Common Stockholders
-182.95M	-142.87M	116.92M	410.14M	-138.21M	-43.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.30M	14.87M	25.41M	153.13M	134.67M	17.45M
	Total Assets
2.25B	2.23B	2.68B	2.70B	1.62B	1.34B
	Total Debt
0.00	165.00M	541.66M	617.04M	181.41M	35.14M
	Net Debt
-15.30M	150.13M	516.26M	463.91M	46.74M	17.69M
	Total Liabilities
769.21M	671.51M	1.21B	1.51B	865.89M	357.35M
	Stockholders Equity
1.48B	1.56B	1.42B	1.13B	705.10M	942.86M
Cash Flow		Free Cash Flow
-17.15M	17.62M	-69.53M	101.10M	289.42M	-521.71M
	Operating Cash Flow
121.91M	118.54M	123.08M	349.19M	358.13M	-7.41M
	Investing Cash Flow
-58.00K	36.07M	-177.85M	-865.57M	-161.86M	-513.99M
	Financing Cash Flow
-269.40M	-304.81M	66.71M	534.83M	-79.05M	442.72M

BKV Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNR	77 Outperform	$1.67B	8.84	12.64%	21.91%	―	―
HPK	75 Outperform	$1.43B	13.53	7.09%	1.41%	-11.59%	-28.62%
DMLP	74 Outperform	$1.33B	13.45	33.71%	10.26%	12.35%	-18.66%
TALO	71 Outperform	$1.61B	63.84	0.95%	―	31.40%	92.89%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%
BKV	56 Neutral	$1.98B	―	-13.36%	―	2.24%	-919.48%
NEXT		$2.20B	―	-43.50%	―	―	―

BKV Corporation Corporate Events

BKV Corporation Reports Q1 2025 Financial Results

On May 9, 2025, BKV Corporation announced its financial and operational results for the first quarter of 2025, reporting a net loss of $78.7 million but an adjusted net income of $35.0 million. The company highlighted a strategic joint venture with Copenhagen Infrastructure Partners to advance its CCUS projects, aiming to meet the growing demand for low-carbon energy solutions. Despite the net loss, BKV’s operational performance was strong, with significant contributions from its Power JV and progress in its closed-loop strategy.

BKV Corporation Forms Joint Venture for CCUS Projects

On May 8, 2025, BKV Corporation‘s subsidiary, dCarbon Ventures, entered into a joint venture agreement with C Squared Solutions to form BKV dCarbon Project, LLC, aimed at developing CCUS projects. This strategic partnership involves a significant capital commitment from the investor, potentially reaching $1 billion, and establishes an exclusivity agreement for BKV to develop CCUS projects through the joint venture, impacting its operational focus and market positioning.